Because Western countries are known to confiscate other people’s assets?I can see why US and U.S. manufacturers are against that.
Why would China reject the offer of setting up factories in America?
Because Western countries are known to confiscate other people’s assets?I can see why US and U.S. manufacturers are against that.
Why would China reject the offer of setting up factories in America?
Exactly. I doubt people will read this declaration. Talks have just begun. Maybe rates are dropped to 80%.Because that is how Trump works mentally. He has to win and will spin any outcome as a win which will be used to gas his base into believing he is a genius.
Russia done it already. EU can do it too. Hasn’t stopped Chinese investments into EU.Because Western countries are known to confiscate other people’s assets?
That's not a big issue. They'll likely have JV requirements anyway in an attempt to copy China's previous moves, so the risk will be spread out. Chinese companies could be responsible for investing in the Chinese portions of the supply chain while the American partner would be responsible for Capex in the US. That makes logistical sense as well as each partner would know how to navigate their own government's bureaucracy better.Because Western countries are known to confiscate other people’s assets?
EU has far more to lose if they try to rob China.Russia done it already. EU can do it too. Hasn’t stopped Chinese investments into EU.
Tariffs and protectionism are the main reasons why Chinese companies are not in the U.S.
If ann offer is made to have them dropped, would BYD and others not set up shop in the U.S?
Exactly.That's not a big issue. They'll likely have JV requirements anyway in an attempt to copy China's previous moves, so the risk will be spread out. Chinese companies could be responsible for investing in the Chinese portions of the supply chain while the American partner would be responsible for Capex in the US. That makes logistical sense as well as each partner would know how to navigate their own government's bureaucracy better.
I predicted this as a possible outcome of the trade war. Again, you have to take Trump fairly literally, and he's said during campaigning that he wanted Chinese companies to come and manufacture in the US.
So what I think will happen would be a headline of something like GM/BYD JV to invest $10 billion in South Carolina gigafactory. BYD will invest its money in building components in China and R&D, while GM will get the land/permits etc. in the US, build the factory and assemble the battery and car. Software would be designed in China, then refined for American taste in the US so it's no longer labeled Chinese software, and data hosting would be in the US.
That's not a big issue. They'll likely have JV requirements anyway in an attempt to copy China's previous moves, so the risk will be spread out. Chinese companies could be responsible for investing in the Chinese portions of the supply chain while the American partner would be responsible for Capex in the US. That makes logistical sense as well as each partner would know how to navigate their own government's bureaucracy better.
Pritzker tried bringing Gotion. And Rubio stalled that.That's not a big issue. They'll likely have JV requirements anyway in an attempt to copy China's previous moves, so the risk will be spread out. Chinese companies could be responsible for investing in the Chinese portions of the supply chain while the American partner would be responsible for Capex in the US. That makes logistical sense as well as each partner would know how to navigate their own government's bureaucracy better.
I predicted this as a possible outcome of the trade war. Again, you have to take Trump fairly literally, and he's said during campaigning that he wanted Chinese companies to come and manufacture in the US.
So what I think will happen would be a headline of something like GM/BYD JV to invest $10 billion in South Carolina gigafactory. BYD will invest its money in building components in China and R&D, while GM will get the land/permits etc. in the US, build the factory and assemble the battery and car. Software would be designed in China, then refined for American taste in the US so it's no longer labeled Chinese software, and data hosting would be in the US.